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The South African currency was trading at its strongest level over a month early on Friday (8th March). Rand firmed in early trading on Thursday against a weaker U.S. dollar, after Federal Reserve Chair Jerome Powell suggested rate cuts will likely come later this year. At 0638 GMT, the rand traded at 18.8050 against the dollar, about 0.1% stronger than its previous close. The rand has enjoyed a stellar week so far, capitalising on some appreciation that began last week.
The South African currency was trading at its strongest level in over a month early on Friday (8th March). Rand firmed in early trading on Thursday against a weaker U.S. dollar, after Federal Reserve Chair Jerome Powell suggested rate cuts will likely come later this year. At 0638 GMT, the rand traded at 18.8050 against the dollar, about 0.1% stronger than its previous close. The rand has enjoyed a stellar week so far, capitalising on some appreciation that began last week
The dollar was trading down about 0.1% against a basket of global currencies. A surge in gold prices has helped the rand gain some ground this week, analysts said, with little positive news at home to boost the currency. But local economic data releases this week were broadly negative, with the current account deficit widening more than expected and net foreign reserves falling in February.
Central bank data released on Thursday showed that South Africa’s net foreign reserves fell slightly to USD 56.652 billion at the end of February from USD 56.662 billion in January. South African rand stable as gold prices surge Gross reserves increased to USD 61.653 billion in February from USD 61.188 billion in January. South Africa’s benchmark 2030 government bond was slightly stronger in early deals, with the yield down 0.5 basis points to 10.090%.
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In other central bank data, South Africa’s current account deficit widened sharply in the fourth quarter of 2023 to 2.3% of gross domestic product (GDP) from a revised 0.5% of GDP in the third quarter. South Africa’s benchmark 2030 government bond was stronger, with the yield down 3 basis points to 10.065%.
